HR/Recruiting

Temporary staffing companies are usually faced with the difficulty of having to pay contractor’s wages out of their own cash before the receivable generated by the contractor is paid.

A corporate customer hires one or more of your contractors. The contractor in turn submits their timesheets to you. You generate an invoice and submit it to your customer, however you have to pay your contractor right way. You may not receive payment from your customer for 30 – 60 days from invoice date but you are still required to pay your contractor every 2 weeks or sometimes even weekly!

As you company continues to grow, is more successful and gains more business, payroll adds up very quickly, and the problem is further acerbated. Without an injection of additional working capital how are you expected to continue to grow? Factoring or receivable financing is very common solution to this industry challenge. Although Philmark specializes in short term supplemental financing of receivables in temporary staffing situations it often becomes a long term solution until the profit generated is realized in order to meet the working capital needs of the business.